They are selling for .02 cents. Seems very cheap to me. We will make huge money even if we hit $13 to $13.50 before earnings. What are the chances we hitting $13 to $13.50 before earnings and may be 5% to 10% upside after earnings?
Would you say 1 in 10 on the positive side?
Judges dismissal in LIBOR CASE should be a positive at open. Hedgies will take it down as always, but still a decent choice.
Back in Feb. bought April 12 calls , to take profit @13., or if option price rose to 1.30. Exit strategy to close if PPS fell to 11.70, or if option price fell to .50. It did, so closed position. Bought May 12 calls long.
Judges decision, and the right one will be very god for BAC.
Sentiment: Strong Buy
I don't like options too much as a long because they are priced to make money for the option writer. Sure the 14s are cheap, and that's because the market makers ran the odds the Black-Schoales and decided the risk for them is low.
13 Calls are a better value and there is a major resistance point at a little below 13.50. Don't get me wrong, I think BAC is going much higher this year however 14 might be a long-shot in the short-term.
These options will sky rocket if we get a bump on Monday based on the LIBOR rulling on last Friday.
I have loaded 3000 $14 contracts between 2 and 5 cents, let's wait and see what happens tomorrow.
Options go up and down just like stocks. You do not have to hit the strike price of a given option to make money. At .02 if the stock hits the mid 13's, there will be plenty of profit on those 14 calls. Buy them!